First coal from KPC?s Bengalon mine early April

Thursday, October 28 2004 - 06:57 AM WIB

Australian mining contractor Henry Walker Eltin (HWE) said on Thursday that first coal from Kaltim Prima Coal?s Bengalon mine is expected by the end of March 2005.

In a report to The Australian Stock Exchange the company said road works at the new mine would be completed by the end of February 2005 and first coal would be delivered to the port by the end of March.

HWE is the mining contractor for Bengalon with contract value of US$ 1.2 billion.

?Clearing of the mine area has commenced and top soil stripping may commence next week. Site offices and 200-worker camp will be operational by early November,? said HWE.

Bangalon mine development was delayed for several months due to land compensation problems with local villagers.

Bengalon coal reserves, which is estimated in excess of 160 million tons, is contained in four pit shells some 25 kilometers north of KPC?s existing operations in Sangatta. Bengalon is a convetional truck and shovel operations with ROM coal trucked on 25 kilometers haul road to the port crusher and loadout facility.

The mine is expected to produce 6 million tons of coal annually. (alex)

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